Mexichem's Dura-Line pipe unit moves into Canada with acquisition

Mexichem SAB de CV has extended its plastic pipe and conduit production base into Canada with the acquisition of two production facilities there.

Mexichem announced Oct. 26 that it bought Gravenhurst Plastics Ltd. for undisclosed terms from private owners. Gravenhurst had sales of C$15 million (US$11.2 million) in 2015. Its main pipe extrusion factory is in Gravenhurst, about 100 miles north of Toronto. It also runs a division, Temiskaming Plastics Ltd., based in the small town of Temiskaming, about 200 miles north of Gravenhurst.

Gravenhurst Plastics makes high density polyethylene pipe for data communication conduits, infrastructure, construction and other markets. Its data communication product lines are similar to those made by Mexichem's Fluent Business Group, but it also extrudes drainage pipe and some products for construction that are not made by Fluent.

Fluent holds Mexichem's plastic pipe operations, which are better known as the Dura-Line businesses. In North America, Dura-Line has 11 pipe extrusion plants in the United States and two in Mexico. Gravenhurst Plastics and the Temiskaming division will also become part of Fluent.

Dura-Line has been actively selling in Canada for several years and in the past decade has been more aggressive in the market, according to Dura-Line spokeswoman Tanya Kanczuzewske. Most of its sales in Canada have revolved around FuturePath and MicroDuct conduits for fiber optic networks.

“We have plans to upgrade and add equipment [at Gravenhurst Plastics] so we can expand locally manufactured products for the datacom market in Canada,” Kanczuzewski said in an email. She declined to provide details of the projects.

The Temiskaming operation will continue running, “and is part of our growth plan,” Kanczuzewski added. Employment at that operation and in Gravenhurst total about 60.

Gravenhurst Plastics was found in 1968. Its pipe and conduit are certified to Underwriters' Laboratories, United Nations and other standards. Last year it expanded its datacom offerings. It exports globally and maintains its own truck fleet to ensure quick delivery.

“Gravenhurst [Plastic's] longstanding relationships in the Canadian market will enable us to expand Fluent's international footprint, leveraging world-renowned Dura-Line branded products, while preserving Gravenhurst's local presence,” noted Fluent President Paresh Chari in a news release.

Fluent supplies its datacom and other HDPE conduit to Tier 1 communications corporations around the world. The Dura-Line products allow scalable design for the high bandwidth demands for the “Internet of Things,” the company stated.

“Gravenhurst [Plastics'] deep roots and innate understanding of the dynamics of the Canadian market will be invaluable to our shared success,” said Emmanuelle Dubu, Gravenhurst Plastics' president for Fluent in the United States and Canada, in a news release.

Fluent had sales of about $3 billion for the 12 months ended in September. It sells in markets around the world and also counts plastic distribution pipe and geotextiles for infrastructure among its offerings. It extrudes HDPE, PVC, polypropylene and specialty flame-retarded compounds. Its presence spans 47 countries.

The town of Gravenhurst has about 12,000 residents and is a major municipality in a tourist and cottage area north of Toronto. Of note is that it was the site of Canada's first injection molding machine in 1930, an Eckert & Ziegler model made in Berlin for Rubberset. Despite that bit of history, the town does not have a large manufacturing sector.

Mexichem's other business units are Vinyl, a producer of PVC resins and compounds, and Fluor, which makes fluorine-based chemicals that are raw materials for fluoropolymers and other applications. Mexichem, based in Mexico City, has annual sales of about $5.7 billion and trades on the Mexican Stock Exchange. Officials said the latest acquisition provides a platform to expand all Mexichem's businesses in Canada.

Dura-Line expanded its Knoxville headquarters office last year to accommodate growth. Mexichem acquired Dura-Line in 2014.